Finshots Daily Falling rupee, rising dollar - Who benefits and who loses?
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Nov 16, 2024 Explore the economic implications of a falling rupee and rising dollar. Discover how these currency fluctuations impact various sectors in India, particularly imports, inflation, and external debt. Learn about the potential benefits for industries like IT and pharmaceuticals. The discussion sheds light on who stands to gain and who faces setbacks in this shifting financial landscape.
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Mr. Nomad's Currency Exchange
- Mr. Nomad's story explains currency fluctuations using a traveler's experience exchanging rupees for dollars.
- The anecdote illustrates how exchange rates change based on supply and demand.
Impact of a Strong Dollar on India
- A strong dollar negatively impacts India due to increased oil import costs and imported inflation.
- This worsens India's trade deficit and increases debt burdens for companies borrowing in dollars.
Sectors Benefiting from a Rising Dollar
- A rising dollar benefits India's IT and pharmaceutical sectors due to increased revenue from exports.
- The textile sector also gains from a weaker rupee's impact on global competitiveness.